Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 50,000 Sales tax 2,700 Freight charges for shipment of equipment 750 Insurance on the equipment for the first year 950 Installation of equipment 1,500 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Pretend it is early 2002 and you are Senator Paul Sarbanes. What would you do differently when writing the Sarbanes-Oxley Act? (Do not say you think it is perfect and you would not do anything differently. Discuss at least two things you would do differently.please explain in detail.
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In this problem, you will apply the concept of present value to find at what amount a bond payable should be recorded. I encourage you to use Excel to find the answer.
Company ABC needs $1,000,000 for an investment but does not have enough cash to finance the opportunity. After considering its options, ABC decides to finance the investment using debt. Unfortunately, ABC is unable to find a single creditor willing to lend it the entire $1,000,000. Instead, it finds four creditors each willing to lend it $250,000. All four lenders agree that they ought to earn 8% annual interest on their investment. However, each lender wants its $250,000 returned at a different point in time. One lender demands repayment after five years, the next ten years, the third fifteen years, and the final twenty years. ABC agrees to make annual payments totaling $12,000 to each lender while the principal balance of $250,000 is outstanding (for example, through years one through five for the first lender).
What is the value of the liability that Company ABC must record for the above financing plan? Round your answer to the nearest dollar.
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Define in own words please
CHAPTER 6 – Accounting for Merchandising Businesses
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a company purchases inventory during the year in four batches, with unit and price amount shown below:
Batch 1 - 9,500 units @ $2.10 per unit
Batch 2 - 4,300 units @ $2.08 per unit
Batch 3 - 3,600 units @ $2.04 per unit
Batch 4 - 7,200 units @ $2.01 per unit
10,800 units were sold after Batch 2 was purchased, while 3,400 units were sold after Batch 3 was purchased.
1. calculate cost of goods sold and ending inventory under the LIFO method, using the perpetual inventory system.
2. Calculate cost of goods sold and ending inventory under the lifo method, using the periodic inventory system
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Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.)
b. Prepare a vertical analysis of the balance sheet data for Nike for 2020.
Prepare horizontal and vertical analyses.
E13.6 (LO 2) Here are the comparative income statements of Delaney Corporation.
Delaney Corporation Comparative Income Statements For the Years Ended December 31 |
||||
2020 | 2019 | |||
Net sales | $598,000 | $500,000 | ||
Cost of goods sold | 477,000 | 420,000 | ||
Gross profit | 121,000 | 80,000 | ||
Operating expenses | 80,000 | 44,000 | ||
Net income | $ 41,000 | $ 36,000 |
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Multiple-Step Income Statement and Report Form of Balance Sheet
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
Cash | $111,300 | Gerri Faber, Drawing | $66,700 | |
Accounts Receivable | 302,100 | Sales | 4,025,000 | |
Merchandise Inventory | 338,400 | Cost of Merchandise Sold | 2,358,600 | |
Estimated Returns Inventory | 13,350 | Sales Salaries Expense | 663,300 | |
Office Supplies | 10,500 | Advertising Expense | 182,400 | |
Prepaid Insurance | 8,100 | Depreciation Expense—Store Equipment | 35,500 | |
Office Equipment | 245,000 | Miscellaneous Selling Expense | 15,600 | |
Accumulated Depreciation—Office Equipment | 166,500 | Office Salaries Expense | 362,100 | |
Store Equipment | 764,800 | Rent Expense | 53,500 | |
Accumulated Depreciation—Store Equipment | 245,000 | Insurance Expense | 16,600 | |
Accounts Payable | 169,500 | Depreciation Expense—Office Equipment | 26,700 | |
Customer Refunds Payable | 26,700 | Office Supplies Expense | 9,800 | |
Salaries Payable | 10,800 | Miscellaneous Administrative Exp. | 7,100 | |
Note Payable (final payment due 2032) | 355,000 | Interest Expense | 10,800 | |
Gerri Faber, Capital | 603,750 |
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $14,200.
4. Which type of income statement shows intermediate balances?
I think that I know some of these answers but I am concerned that I am getting the wrong answers.
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Coverall Inc. produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and revenue data have been provided for the first month of the plant’s operation in the form of a worksheet:
Beginning inventory | 0 | ||
Units produced | 20,000 | ||
Units sold | 15,000 | ||
Selling price per unit | $ | 80 | |
Selling and administrative expenses: | |||
Variable per unit | $ | 6 | |
Fixed (total) | $ | 475,000 | |
Manufacturing costs: | |||
Direct materials cost per unit | $ | 12 | |
Direct labour cost per unit | $ | 9 | |
Variable manufacturing overhead cost per unit | $ | 5 | |
Fixed manufacturing overhead cost (total) | $ | 600,000 | |
Since the new case is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
Prepare a contribution format income statement for the month. (Do not leave any empty spaces; input a 0 wherever it is required.)
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Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:
Variable cost per unit: | ||
Direct materials | $ | 25 |
Fixed costs per year: | ||
Direct labor | $ | 1,242,000 |
Fixed manufacturing overhead | $ | 831,000 |
Fixed selling and administrative expenses | $ | 260,000 |
The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 69,000 units and sold 69,000 units. During its second year of operations, it produced 69,000 units and sold 65,400 units. In its third year, Ogilvy produced 69,000 units and sold 72,600 units. The selling price of the company’s product is $59 per unit.
Required:
1. Assume the company uses super-variable costing:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an income statement for Year 1, Year 2, and Year 3.
2. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced:
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an income statement for Year 1, Year 2, and Year 3.
3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3.
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Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
Sales (29,000 units) | $ | 1,160,000 | ||||
Variable expenses: | ||||||
Variable cost of goods sold | $ | 475,600 | ||||
Variable selling and administrative | 195,750 | 671,350 | ||||
Contribution margin | 488,650 | |||||
Fixed expenses: | ||||||
Fixed manufacturing overhead | 288,000 | |||||
Fixed selling and administrative | 214,150 | 502,150 | ||||
Net operating loss | $ | ( 13,500) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
Units produced | 32,000 | |||
Units sold | 29,000 | |||
Variable costs per unit: | ||||
Direct materials | $ | 7.50 | ||
Direct labor | $ | 7.30 | ||
Variable manufacturing overhead | $ | 1.60 | ||
Variable selling and administrative | $ | 6.75 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
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P. 5-1
Transactions may have significantly different impacts on a government's budget, governmental funds statements, and government‐wide statements.
A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on year‐ending June 30 2020, general fund expenditures or transfers and (2) on year‐ending June 30, 2020, government‐wide expenses (e.g., “increase expenditures by $X” or “no impact”). Provide a brief explanation of your response, indicating that you are aware of the relevant financial reporting issue.
I need copy and paste thx
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question 3. P13-12A The income statement and unclassified statement of financial position for E-Perform, Inc. follow:
E-PERFORM, INC. Statement of Financial Position December 31 |
||
2018 |
2017 |
|
Assets |
||
Cash |
$ 97,800 |
$ 48,400 |
Held for trading investments |
128,000 |
114,000 |
Accounts receivable |
75,800 |
43,000 |
Inventory |
122,500 |
92,850 |
Prepaid expenses |
18,400 |
26,000 |
Equipment |
270,000 |
242,500 |
Accumulated depreciation |
(50,000) |
(52,000) |
Total assets |
$662,500 |
$514,750 |
Liabilities and Shareholders' Equity |
||
Accounts payable |
$ 93,000 |
$ 77,300 |
Accrued liabilities |
11,500 |
7,000 |
Bank loan payable |
110,000 |
150,000 |
Common shares |
200,000 |
175,000 |
Retained earnings |
248,000 |
105,450 |
Total liabilities and shareholders' equity |
$662,500 |
$514,750 |
E-PERFORM, INC. Income Statement Year Ended December 31, 2018 |
||
Sales |
$492,780 |
|
Cost of goods sold |
185,460 |
|
Gross profit |
307,320 |
|
Operating expenses |
116,410 |
|
Income from operations |
190,910 |
|
Other revenues and expenses |
||
Unrealized gain on held for trading investments |
$14,000 |
|
Interest expense |
(4,730) |
9,270 |
Income before income tax |
200,180 |
|
Income tax expense |
45,000 |
|
Net income |
$155,180 |
Additional information:
Instructions
(a) Prepare the statement of cash flows, using the direct method.
(b) E-Perform's cash position more than doubled between 2017 and 2018. Identify the primary reason(s) for this significant increase.
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C. Adidas Inc. had the following balance sheet on September 30, 2019 (in thousands):
Assets |
Liabilities and Stockholders’ Equity |
||
Cash |
445,421 |
Accounts Payable |
687,121 |
Accounts Receivable |
1,754,137 |
Notes Payable |
553,153 |
Inventories |
1,338,640 |
Other Liabilities |
965,095 |
Equipment and |
Total Liabilities |
2,205,369 |
|
Other Assets |
1,823,009 |
Stockholders’ Equity |
3,155,838 |
Total Assets |
5,361,207 |
Total Liabilities and Stockholders’ Equity |
5,361,207 |
Consider the following transactions that occurred during the first half of October 2019 (in thousands):
1. Inventories were acquired for cash, P160.
2. Inventories were acquired on open account, P190.
3. Unsatisfactory shoes acquired on open account in June were returned for full credit, P40.
4. Equipment of P120 was acquired for a cash downpayment of P30 plus a 6-month promissory note of P90.
5. To encourage wider displays, special store equipment was sold on account to Makati area stores for P400. The equipment had cost P400 in the preceding month.
6. Sarah G. starred in a movie and as a favor to an Adidas executive, she agreed to display Adidas shoes in a basketball scene. No fee was paid by Adidas.
7. Cash was disbursed to reduce accounts payable, P170.
8. Collected cash on account, P180.
9. Borrowed cash from a bank, P500.
10. Sold additional common stock for cash to new investors, P900.
Prepare an analysis showing the effects of the October transactions on the financial position of Adidas.
Prepare a balance sheet as of October 15, 2019.
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High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
Beginning inventory | 0 | |
Units produced | 43,000 | |
Units sold | 38,000 | |
Selling price per unit | $ | 79 |
Selling and administrative expenses: | ||
Variable per unit | $ | 4 |
Fixed (per month) | $ | 556,000 |
Manufacturing costs: | ||
Direct materials cost per unit | $ | 15 |
Direct labor cost per unit | $ | 7 |
Variable manufacturing overhead cost per unit | $ | 3 |
Fixed manufacturing overhead cost (per month) | $ | 774,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
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